European Outsourcing has been lagging behind the US market for many many years. But now when Europe holds one of the most expensive currencies, more European companies are turning for outsourcing possibilities. Especially, start-up companies.

Established market players will, of course, choose the big outsourcing names which provide security and scalability of 2000 to 25 000 FTEs. However, there is a niche of SMEs or even Start-ups which could use Outsourcing to make gigantic leap forward in business growth. Outsourcing from established providers can be a great financial benefit as well as time management improvement and experience.

Most start-up companies are either overwhelmed or insufficiently organized. The reality of having an outsourcing contract for the start-up are:

- Better organization through contractual relationship management;
- Outsourcing provider experience spill-over to start-up;
- Cost savings vs. locale employee hiring;
- Better efficiency and free consulting service with outsourcing contract.

With the current regular taxation and financial structures, EU countries sometimes offer special conditions for start-up companies for the duration of 1-2 years only. Hence, it is especially beneficial for a start-up to use outsourcing and save costs while improving chances of a full-blown success.

Based on the latest statistics, 40 to 50% of Start ups fail during their first year of life, however, 60 to 70% of those start ups could have prolonged and may be turned out to be successful if their funding was enough for 2 and not 1 year. Outsourcing can make this dream a reality for an EU-based start-ups, either in new technlogies or old brick-and-mortar business, fully supporting IT, Customer Service, Finances, and Sales.

Please contact Verana Obschots with BPO Ukraine, if you are an EU-based start-up.

E-mail: verena.obschots@bpoukraine.info